Home Equity Lending Market Size
| Study Period | 2020-2029 |
| Market Size (2024) | USD 30.74 Billion |
| Market Size (2029) | USD 36.74 Billion |
| CAGR (2024 - 2029) | 3.50 % |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Home Equity Lending Market Analysis
The Home Equity Lending Market size is estimated at USD 30.74 billion in 2024, and is expected to reach USD 36.74 billion by 2029, growing at a CAGR of 3.5% during the forecast period (2024-2029).
Loans provided by the global banking industry are observing a continuous increase over the years resulting in an increase in demand for collateral as a risk mitigation strategy by the banks. United States, Canada, Russia, China, and Australia had emerged as countries post covid with the largest increase in y-o-y housing prices leading to an increase in loan value secured through Home Equity lending. With an increase in interest rate by monetary authorities to curb the inflation home equity lending has observed an increase with a comparatively higher price rise of housing markets.
The continuousThe increase in population is resulting in a rising global demand for housing space with a continuous increase in the price of residential spaces. China, the United States, India Germany, and Japan are among the countries with the largest residential real estate and are providing opportunities for Home equity lending businesses to develop. Global rise in real estate prices and the easing of regulatory restrictions are encouraging people to use their homes as collateral for loans.
Technological innovation in the market are leading to an increase in the number of users opting for Home Equity lending. Use of cloud banking software by the banks are reducing the time taken by the users to purchase Home equity loans and data driven tools of AI and ML are automating the decision making process of banks. Developed countries such as United States are observing a sharp rise in homeowner equity in real state and driving business for Home Equity lending in the region.
Home Equity Lending Market Trends
Access to Large Amount of Loan
With home equity lending a user is able to borrow almost 85% of the equity they owe in their home. Home equity lending exists with a comparatively lower level of interest rate than the market allowing users to borrow a large amount of money. In countries with developed financial markets of United States and Europe Home equity lending has observed a continuous rise over the years with a significant gap existing in the developing Asian markets resulting in an increasing international players expanding their home equity lending product in Asian countries. Asia is emerging as a region with the largest number of small and medium-sized enterprises and with businesses requiring a significant sum of money during the initial stages, home equity lending has emerged as an efficient solution to borrow a significant amount of money at a lower rate of interest.
Rise in Home Renovation
By using their existing equity in the home as collateral an increasing number of users are finding it an efficient way for financing home renovation. By using the property as collateral lenders provide a lump sum amount to the user for financing renovations. Borrowers prefer this method for financing because the lender charges an interest rate that is lower than other credit but higher than the first mortgage of the borrower. The Global home renovation market has observed continuous growth over the years existing at a value of more than USD 800 Billion resulting in a rising number of people opting for Home equity lending to finance these renovations. Newzeland, Australia, Singapore, and Sweden are existing as the leading countries with attraction towards home renovation and are expected to drive the home equity lending market at a comparatively higher rate in comparison to other nations.
Home Equity Lending Industry Overview
The Home equity lending market is partially fragmented with an increasing number of players entering the market. With technological advancement and product innovation, companies are increasing their market presence and tapping new market opportunities. Some of the existing players in the global Home Equity Lending Market are Bank of America Corporation, Discover Bank, and Member FDIC.
Home Equity Lending Market Leaders
Bank of America Corporation
Discover Bank
Member FDIC
LoanDepot LLC
Spring EQ LLC
*Disclaimer: Major Players sorted in no particular order
Home Equity Lending Market News
- In April 2022, Redfin a real estate company based in Seattle (United States) acquired Bay Equity Home Loans with a sum of USD 137.8 Million. The merger accelerates Redfin’s strategy for expanding its business with customers to buy, sell, rent, and finance a home.
- In July 2022, Ontario Teachers’ Pension Plan Board acquired HomeQ which exists as a parent company of HomeEquity Bank, from Birch Hill Equity Partners Management Inc. HomeEquity Bank exist as a Canadian Bank offering a range of reverse mortgage solutions product and Ontario Teachers' Pension Plan Board is a global investor.
Home Equity Lending Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase In Sales of Household Units
4.2.2 Higher Duration of Repayment
4.3 Market Restraints
4.3.1 Low Income Countries with Poor Housing are Restraints of the Market
4.3.2 Rising Interest Rate
4.4 Market Opportunities
4.4.1 Technological Innovation of Digital Lending Expanding Market Size
4.5 Industry Attractiveness - Porters' Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Technological Innovations in the Home Equity Lending Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Types
5.1.1 Fixed Rate Loans
5.1.2 Home Equity Line of Credit
5.2 By Service Providers
5.2.1 Banks
5.2.2 Online
5.2.3 Credit Union
5.2.4 Others
5.3 By Regions
5.3.1 North America
5.3.2 South America
5.3.3 Europe
5.3.4 Asia-Pacific
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Bank of America Corporation
6.2.2 Discover Bank
6.2.3 Member FDIC
6.2.4 LoanDepot LLC
6.2.5 Spring EQ LLC
6.2.6 TBK BANK
6.2.7 SSB
6.2.8 U.S. Bank
6.2.9 Pentagon Federal Credit Union
6.2.10 The PNC Financial Services Group, Inc.*
- *List Not Exhaustive
7. MARKET FUTURE TREND
8. DISCLAIMER AND ABOUT US
Home Equity Lending Industry Segmentation
Home equity lending is a type of loan that allows the homeowner to borrow against the equity in their homes. The loan amount is provided on the basis of the difference between the home's current market value and the mortgage balance due in it.
The home equity lending market is segmented by types, by service providers, and by region. By type, the market is segmented into fixed-rate loans and home equity lines of credit. By service providers, the market is segmented into banks, online, credit unions, and others. By region, the market is segmented into North America, South America, Europe, Asia Pacific, Middle East and Africa. The report offers market sizes and forecasts for the home equity lending market in value (USD) for all the above segments.
| By Types | |
| Fixed Rate Loans | |
| Home Equity Line of Credit |
| By Service Providers | |
| Banks | |
| Online | |
| Credit Union | |
| Others |
| By Regions | |
| North America | |
| South America | |
| Europe | |
| Asia-Pacific | |
| Middle-East and Africa |
Home Equity Lending Market Research FAQs
How big is the Home Equity Lending Market?
The Home Equity Lending Market size is expected to reach USD 30.74 billion in 2024 and grow at a CAGR of 3.5% to reach USD 36.74 billion by 2029.
What is the current Home Equity Lending Market size?
In 2024, the Home Equity Lending Market size is expected to reach USD 30.74 billion.
Who are the key players in Home Equity Lending Market?
Bank of America Corporation, Discover Bank, Member FDIC, LoanDepot LLC and Spring EQ LLC are the major companies operating in the Home Equity Lending Market.
Which region has the biggest share in Home Equity Lending Market?
In 2024, the North America accounts for the largest market share in Home Equity Lending Market.
What years does this Home Equity Lending Market cover, and what was the market size in 2023?
In 2023, the Home Equity Lending Market size was estimated at USD 29.66 billion. The report covers the Home Equity Lending Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Home Equity Lending Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Home Equity Lending Industry Report
Statistics for the 2024 Home Equity Lending market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Home Equity Lending analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
